Amazon $1.4 Billion iRobot Acquisition Faces EU Antitrust Scrutiny
Amazon’s bold $1.4 billion acquisition of iRobot is encountering hurdles from EU antitrust regulators, as insiders reveal. Despite a prior caution from the European Commission on potential anti-competitive impacts in the robot vacuum market, Amazon has chosen to proceed without offering solutions to address these concerns.
Commission Concerns and Decision Timeline
The European Commission, slated to decide on the acquisition by February 14, has maintained a stance of silence, paralleled by Amazon. Regulators are primarily concerned about Amazon potentially stifling competition for iRobot on its online platform, notably in key European markets like France, Germany, Italy, and Spain.
While the newly enacted EU tech rules within the Digital Markets Act could theoretically address these concerns, the Commission is treading cautiously due to the prolonged enforcement process and the absence of legal challenges to the new legislation. Consequently, there is contemplation within the Commission about blocking the deal at this crucial stage.
A potential rejection could set a precedent for future Amazon acquisitions, with EU antitrust enforcers potentially demanding substantial remedies as a condition for approval. In response to these developments, iRobot’s shares have experienced a significant 30% drop during late trading.
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